North Carolina Down Payment Assistance Programs

Payments Gateway - The North Carolina Housing Finance Agency has two great programs for first-time Home Buyers. These programs are the Down Payment Assistance System as well as the Mortgage Credit Certificate.

Should you meet the requirements for one of these plans and you purchase a home between December 1, 2009 and January 1, 2009, you can ALSO qualify for the $8,000 tax credit only enacted into law in the Federal Economic Stimulus Plan.

First, who's a First Time Home Buyer? A First Time Home Buyer is someone who hasn't owned a home within the past three years. This is the same qualifying definition.

The MCC takes this a step farther. An MCC “reduces your tax liability based on a percentage of the mortgage interest that you pay.

It is possible to claim 20% of the interest you pay on your mortgage as a credit in your federal income taxes, in case you are eligible for the MCC. You can save as much as .

You will have the ability to combine this should you qualify for 2009, for the MCC. This would reduce a purchaser's tax liability .

Who qualifies for an MCC is based on your own income along with the price of the property you are buying. Household income is defined as the “gross income of the mortgagor and any other person expected to live in the residence who's 18 years of age or older.”

The income and house price limits that apply in Durham Orange and Chatham Counties are given below.

MCC Income Limits 1 Person $61,500 2 Men $61,500 3 Individuals $70,500 4 Men $70,500

MCC Sales Cost Limits New Dwelling $220,000 Existing Dwelling $210,000

Home buyers that need help with their deposit and closing costs might be able to get down payment assistance - or, put simply, interest-free, deferred second mortgages up to $8,000. The customer only needs to pay and the load would pay up to $8,000 of the remaining balance.

This plan has more rigorous income limits than the MCC program summarized above. Like the MCC application, it may be used in combination with the new $8,000 tax credit on house purchases between December 1, 2009 and January 1, 2009. The down payment assistance, nevertheless, can't be employed in combination with the MCC. This is an either or situation.

House price limits that apply in Orange, Durham and Chatham Counties and the income are given below.

Down Payment Assistance Income Limits

1 Individual $39,950 2 Individuals $45,650 3 Men $51,350 4 Men $57,050

Down Payment Support Sales Price Limits New Dwelling $210,000 Existing Residence $210,000